House PACE Act proposes OCC path for nonbanks to access

A bipartisan House bill would let certain nonbank payment providers tap core Federal Reserve payment services through an optional OCC-supervised framework. The proposal is drawing early support from major crypto trade groups that want stablecoin and digital-asset payments to compete on the same rails as bank-backed providers.

Key Takeaways

Reps. Sam Liccardo (D-CA) and Young Kim (R-CA) introduced the 23-page Payments Access and Consumer Efficiency (PACE) Act.
The bill would establish an optional federal supervisory framework for nonbank payment service providers administered by the Office of the Comptroller of the Currency.
Qualified providers could gain access to Federal Reserve payment services including Fedwire, FedNow, and FedACH under the proposal’s fact sheet.
Participation would come with 1:1 reserve requirements plus risk and recordkeeping standards.

PACE Act Targets Direct Fed Rail Access for Qualified Nonbanks

The Payments Access and Consumer Efficiency (PACE) Act is a targeted attempt to change who can plug into the U.S. payment stack. Introduced Tuesday by Reps. Sam Liccardo (D-CA) and Young Kim (R-CA), the 23-page bill would allow “qualified” nonbank payment providers to access Federal Reserve payment services if the framework becomes law.

The access point is the part traders and payments operators care about. The bill’s fact sheet explicitly contemplates nonbank connectivity to Fedwire, FedNow, and FedACH. Fedwire is the Federal Reserve’s real-time gross settlement system for high-value inter-institution payments. FedNow is the Fed’s instant payment service for near-real-time transfers. FedACH is the Federal Reserve’s automated clearing house service for batch-processed electronic payments.

Liccardo framed the goal as lowering consumer costs and modernizing payments, calling for a system as easy as “sending a text or streaming a TV show.” He also said, “We can reduce the burden of bank fees borne by too many American families by enabling broader access to innovative payment systems that deliver cheaper, faster, more reliable service,” and added: “I’m proud to partner with Young Kim on this bipartisan PACE Act to modernize our payment system for the benefit of millions of cash-strapped Americans.”

How the Optional OCC Framework Would Work

PACE would create an optional federal supervisory framework for nonbank payment service providers, administered by the Office of the Comptroller of the Currency (OCC). The bill describes the target set as nonbanks such as money transmitters that may already operate under a patchwork of state licensing.

Mechanically, the proposal aims to streamline federal registration for “qualified payment companies,” then tie that status to access to Fed payment services. The design choice matters. Instead of offering access with minimal oversight, the framework pairs expanded connectivity with prudential-style constraints.

The bill would require participating providers to maintain 1:1 reserves, meaning reserves must match customer funds dollar-for-dollar. It also imposes risk and recordkeeping standards, among other requirements. For market structure, that combination reads as an attempt to reduce counterparty and operational risk while widening the set of entities that can settle and move money on core rails.

Crypto Trade Groups Line Up Behind the Proposal

Two major crypto trade groups publicly endorsed the bill’s direction, signaling the industry is positioning PACE as a competition and infrastructure issue rather than a narrow banking-policy tweak.

Crypto Council of Innovation CEO Ji Hun Kim said: “CCI looks forward to working with Congress to advance responsible payments innovation and ensure that Americans benefit from secure and efficient payments options.”

Blockchain Association CEO Summer Mersinger called the bill an “important step forward,” adding: “For too long, digital asset payment companies have been locked out of the same financial infrastructure that their competitors have access to.” She argued the bill would allow “qualified nonbank providers” to obtain “direct access to Federal Reserve payment rails,” enabling “faster, less expensive, and more competitive payment services for American consumers and businesses.”

Key Unknowns: Who Qualifies and How Fast This Can Move

The immediate gating item is definition. The bill and fact sheet describe “qualified” nonbank payment companies and list baseline requirements like 1:1 reserves and risk and recordkeeping standards, but detailed eligibility criteria are not enumerated in the available materials.

The second variable is legislative velocity. Committee referral, hearings, and markups will determine whether this is a messaging bill or a live policy track that can attract amendments and coalition-building.

Regulatory posture is the third swing factor. The framework implicates both the OCC, as supervisor, and the Federal Reserve, as operator of the payment services. Any public positioning from either agency will shape expectations around implementation feasibility and the practical scope of access.

Finally, traders should watch coalition strength. More endorsements from industry groups or major payment firms would signal momentum, while organized opposition would flag friction around access, risk standards, or competitive impact.

What This Could Mean for Stablecoin On/Off-Ramps if Congress Engages

I treat this as a market-structure story first. The bill explicitly targets a long-standing constraint for nonbank payments firms, including crypto-adjacent providers, by putting Fedwire, FedNow, and FedACH access on the table through an OCC-administered pathway.

The threshold that matters is whether Congress turns “qualified payment companies” into a concrete, enforceable category with clear eligibility and a credible timeline. If that holds, the setup starts to look structural rather than narrative-driven, because direct rail access can change distribution economics for stablecoin on- and off-ramps while forcing firms to operate under 1:1 reserves and operational controls that look closer to prudential supervision than light-touch registration.

House PACE Act proposes OCC path for nonbanks to access Fedwire, FedNow, and FedACH